Bank of Baroda share price target

Bank Of Baroda's Asset Quality weakens and Profit Misses Street Estimates. Bank of Baroda reported the net profit of Rs 203.39 crore in the quarter ended June 2017 (Q1FY2018) compared with Rs 154.72 crore in the previous quarter and Rs 423.62 crore in the corresponding quarter last year. The net interest income (NII) of the bank was subdued at 1%, as the bank has showed decline in NIMs to 2.12% in Q1FY2018. The non-interest income improved at better pace of 7% in Q1FY2018 with strong growth in core fee income. With the subdued revenue growth, the bank has showed increase in cost-to-income ratio, while recording 1% decline in the operating profit in Q1FY2018....

ICICI Securities Ltd | Retail Equity Research BoB's operational earnings were a tad above our estimates. However, asset quality saw pressure with slippages rising QoQ Absolute GNPA increased by | 3454 crore QoQ to | 46173 crore (GNPA ratio increased 94 bps QoQ to 11.4%). Fresh slippages remained elevated at | 5200 crore vs. | 4077 crore in Q4FY17. Within slippages, 45% were from the corporate book. In that, two large accounts in electrical (| 1200 crore) & EPC (~| 600 crore) sectors...

Marred by elevated stress on asset quality and higher credit cost, Bank of Baroda (BoB) has posted a muted performance in 1QFY18. Slippages increased by 27.5% QoQ to Rs52bn primarily due to recognition of two large corporate accounts as NPA along with higher slippages from agriculture portfolio due to ongoing loan waiver scheme by different state governments and recognition of NPAs from loan under special RBI moratorium post demonetisation. As a result, provisioning expenses at elevated level of Rs23.7bn (+18.2% YoY & -9.7% QoQ) dragged PAT to...

Maintain BUY with a TP of Rs 201 (1.4x Mar-19 ABV of Rs 144). After kindling rejuvenation hopes over the trailing year, BOB faltered in 1QFY18. Slippages shot up to Rs 52bn (driven by lumpy corporate ACs and the farm loan waiver impact). Net stressed assets rose to 8.3%, even as advances dropped ~2% sequentially. Stable NIM (2.12%, despite higher slippages), superior PCR at ~66.3% (highest in the peer set), low exposure (~Rs 79bn) to IBC accounts, CASA growth (+24% YoY) and controlled opex (+8%) helped save the blushes.

Bank of Baroda reported Operating Profit of Rs. 2648 Cr in Q1 FY 2018 as against Rs. 2,669 Cr in corresponding quarter previous year, a de-growth of 0.8%. The bank reported net profit of Rs 203 crs for the quarter against profit of Rs 424 crs in...

ICICI Securities Ltd | Retail Equity Research We met the management of Bank of Baroda (BoB) to get an insight into the current scenario on asset quality & future plans. Currently, banking system is facing challenge primarily on two fronts growth & asset quality. Led by slowdown in credit demand from corporate, advances book stayed flat in FY17. However, management has guided for credit offtake at 8-10% in FY18E, led by retail and mid-corporate segment though credit demand from large corporate is seen staying muted....

Though we expect consolidation in the loan book to continue for the next couple of quarters, we continue to like the bank owing to its better capital position, able management and higher provision coverage ratio. Further, gradual improvement in asset quality will lead to better profitability. As a result, we expect the RoA and RoE to improve to 0.5% and 8%, respectively by FY19E. Hence, we continue to maintain BUY rating with a revised upwards TP of Rs200 and value...

NII increased to Rs. 3581.86 Cr in Q4FY17 compared to Rs. 3134.36 Cr in Q3FY17.

Asset Quality & Operating Performance Continue to Improve Bank of Baroda (BoB) has reported substantially improved performance in 4QFY17. It's operating profit increased by 17.4% YoY & 16.4% QoQ to Rs30.2bn led by 7.6% YoY & 14.3% QoQ growth in NII to Rs35.8bn along with healthy 38.8% YoY and 49.4% QoQ growth in core fee income. The Bank has delivered improved performance on all major asset quality parameters with slippages of Rs40.7bn in 4QFY17 vs. Rs41.4bn in 3QFY17 & Rs59.3bn in 4QFY16 along with improvement in recovery (Rs15.4bn in 40QFY17 vs. Rs13.5bn in 3QFY17 & Rs14.3bn in 4QFY16). Its loan book also...

ICICI Securities Ltd | Retail Equity Research The bank reported a healthy core operational performance Asset quality stress continued but owing to healthy recoveries and upgrades absolute GNPA was flat QoQ. Fresh slippages were at | 4077 crore vs. | 4135 crore in Q3FY17. Absolute GNPA was stable QoQ at | 42719 crore (GNPA ratio reduced by 94 bps QoQ to 10.46%). The standard RA fell to | 10785 crore from | 14059 crore, forming ~2.81% of total loans. Total stressed assets (GNPA + RA)...